High housing prices in Vancouver are driving away the key working demographic of 25-40 year olds – more are moving to other provinces than moving in from other provinces.
This article was pointed out by crikey.
Despite the challenges, numerous companies interviewed by Reuters said most of their staff are willing to make sacrifices — like long commutes or raising kids in shoebox condos — for the benefit of Vancouver’s mild climate and outdoor lifestyle.
But those same companies, such as Vancouver-based retailer Mountain Equipment Co-op, also had examples of key hires who ultimately turned down jobs because of the high home prices.
It’s an issue Craig Hemer, an executive recruiter with Boyden, has been grappling with for the better part of a decade.
Hemer has learned ways to soften the blow — selling older executives on the idea of downsizing to a luxurious downtown condo and convincing those with families that suburban life offers more amenities for kids.
And how do the companies react to this challenge?
Companies too are shifting their policies, with some offering car allowances and transit subsidies. Others are opening small suburban offices or allow staff to telecommute from home.
But that isn’t always enough, especially in Vancouver’s start-up scene. Executives say it is easy enough to hire junior staff, but a dearth of experienced engineers and technology workers makes it hard to grow past a certain point.
“There’s just not enough high calibre people here. They all leave when they realize they can make more money in other cities and live there for cheaper,” said Simeon Garratt, chief executive of Spark CRM, a property-focused tech start-up.
“We debate at least once a month whether we should just move to Toronto.”
Read the full article here.
There’s been some discussion lately about the temporary foreign worker program (TFW) and whether Canada needs to import workers, skilled or unskilled.
This of course brings up the debate: companies say they can’t find people to fill positions, workers say thats just because you aren’t paying enough.
Is there something special about Vancouver that enables lower wages to be paid or are is it not true that Vancouverites tend to be underpaid?
Atomic Frog had this to say:
Here are some of the facts that I know of
Highly skilled and highly in demand workers do not stay in Vancouver. You get paid higher in another city and cost of living is likely lower than living in Vancouver. Local companies ALWAYS have problem hiring qualified applicants and if this snowball, they cannot stay in business for very long or be very competitive in their sector. What kind of industry is doing very well in Vancouver anyway these days? Movie industry? Mining? Tech? I work in the local IT industry for the last 20 yrs. I saw all kind of IT ppl who came to town, found a job and eventually left town after a couple of yrs because they had found a much better paying job in another city.
As a result, Vancouver is considered to be a graveyard for job seekers. Even for those who have a job, local salary has been stagnant for yrs. Without a steady stream of local workers who should see their annual salary go up steadily every yr, it is very difficult for this local property bubble to continue.
There are many cases in other parts of the world where property value goes up and stay there. Main reason being foreign investor, but the locals also keep making more money over the yrs. Prices that were higher five yrs ago may not seem to be that high for those cities. However, can we say the same thing for Vancouver?
Do you know skilled workers that have sought better career opportunities outside of Vancouver or are you and your coworkers properly compensated and happy to stay?